PwC agreed to provide outsourced internal audit services while it helped the company establish the framework for an in-house capability. But as the PwC team began extending internal audit’s reach
across the company’s operations, the complexity of the task became more apparent to management.
One factor complicating the challenge was the highly decentralized structure of the company: critical business processes differed across business divisions and its fragmented IT infrastructure was scattered across a large number of applications, systems and databases. Other complicating factors included the sheer number of recent acquisitions and the rapid increase in the size of the company — accompanied by a growing portfolio of risk. Within a year, the company revised its plans to establish an in-house internal audit function.
Pleased with PwC’s ability to adapt to a constantly changing business environment, as well as the value of its services relative to the cost of establishing an internal group, management asked PwC to remain on board in a co-sourcing capacity. As the relationship between PwC and the defense contractor matured, PwC helped its senior executives address an increasing number of strategic needs.
One of the most critical areas has been assisting with the implementation of Sarbanes 404, including an assessment of the company’s general computer and automated application controls. PwC is also providing government contract consulting services, including a high-priority initiative to improve corporate governance over government contract compliance.
Most recently, PwC has begun helping the company address critical issues in treasury and human resources, projects that evolved out of PwC’s support to the company’s Sarbanes 404 readiness work. In addition, PWC replaced another Big Four firm in providing tax services on an outsourced basis.
